Deutsche Börse and NYMEX Cooperate in Development of German Exchange

Deutsche Börse and the New York Mercantile Exchange (NYMEX) have announced that they have signed a letter of intent to work together to set up a German energy exchange. In January, Deutsche Börse announced plans to provide the infrastructure for a German energy exchange by year end. NYMEX has been working with the German electricity industry since last year. Under the letter of intent, NYMEX, the world's largest energy exchange, will provide its expertise, primarily in the field of product development and market organization. The infrastructure of the exchange will be based on technology offered by Deutsche Börse. In initiation of the cooperative relationship, NYMEX has begun to take part in a working group Deutsche Börse has set up with representatives of the energy industry. The working committee was established in March and is focusing on product development. It is intended that the companies represented in this working group should also have a leading role in determining the structure of the operating company of the exchange. Plans call for the exchange to be operated by the energy sector eventually, although no decision regarding a site has been made yet. The two exchanges said this will be determined by the energy sector's objectives and trading on the exchange will begin when the product definition is completed and when a sufficient number of participants are ready.